How To Start Your Own Hosting Reseller Business

  • Save

The digital age rarely allows for a set career path and most careers in tech have not been around long enough to have a set trajectory. Careers today are dynamic and this affords you more room for growth, upskilling, and multiple streams of income.

Most have adopted a side hustle that brings in an additional income. We are in an age where people can capitalize on their hobbies to support a higher standard of living. With the South African economy enduring a recession and the COVID-19 pandemic, having an additional stream of income is appealing.

Recent statistics indicate that web hosting has grown significantly over the past year and as a result of the COVID-19 pandemic, people have tried to find a business within the industry. Reselling is an ideal method of generating an additional income stream as well as recession-proofing your household whilst working from home. 

What is reseller hosting?

Web hosting is the infrastructure that houses website data and enables websites to be accessible on the internet. If your domain name is the address of your website, then think of web hosting as the actual house that hosts website files and data.

Reseller hosting is when you purchase wholesale web hosting and provide your customers with portions of the server and domain resources. Reselling allows you to utilise a web hosting provider’s resources in a manner that allows you to start your own 3rd party web hosting business. 

How do I start my reseller hosting business?

Decide how much money you are willing to invest in your web reseller business. Reseller packages start at R299 a month depending on the disk space that you require. It is advisable to start small and gradually upgrade as your clientele grows. 

How do I structure my business accordingly?

Develop a structure for the services that you will offer. It is recommended to give your customers added value to create a competitive advantage. Here are a few tips from 1-grid CEO, Thomas Vollrath on how to structure your business accordingly:

  • Create a plan – set targets and long-term objectives
  • Decipher the direction for your products
  • Strategise a pricing plan – one which ensures profitability
  • Provide your customers with accessories to add value
  • Offer exceptional customer service
Additionally, Vollrath provides questions that should be asked when structuring your business:
  • Will this be a long-term commitment?
  • Do you have a plan for your web hosting reseller business?
  • Will it be a hobby or will you make a living out of it?
  • Is there an identifiable gap in the market?
Once you have answered these questions and structured your business you should consider giving your business a name and identity:
  • Give your reseller business a name. Register your business domain and register your company with the CIPC
  • Give your business a professional website that customers can visit and peruse your services
  • Create a brand and ensure a strategy which is aligned with this brand
  • Provide a user-friendly interface
  • Create a social media account or have someone manage these for you to drive people to your website 

In conclusion, being an entrepreneur is hard work but is very rewarding if you continue to improve your business model, as the saying suggests “you get what you put out”. Hosting supports entrepreneurs in their ventures through the creation of an online presence. Vollrath advises that through excellent support, you not only acknowledge the importance of having an online presence, but you provide your customers with an understanding to assist them in growing their businesses significantly. 

So ask yourself today, what is stopping you from starting your own reseller hosting business?